Turk Traktor Ve Ziraat Makineleri A.s. · BIST:TTRAK
Turk Traktor Ve Ziraat Makineleri A.s — H1 2023 Earnings Presentation
29 slides from Turk Traktor Ve Ziraat Makineleri A.s's earnings presentation, Jul 28, 2023
Slide 1: TürkTraktör
28.07.2023 TÜRKTRAKTÖR
Slide 2: Agenda
AGENDA BUSINESS RESULTS Tractor Agricultural and Construction Equipment 2023 Expectations Financial Results 2
Slide 3: Local Market Sector Dynamics
LOCAL MARKET SECTOR DYNAMICS Rainfall Agricultural Sector & Input Costs & Consumer Trend Agricultural Production Product Prices Support Programs Financing 3
Slide 4: Rainfall Trend
RAINFALL TREND Cumulative Rainfall Rainfall Analysis 2% decrease Comparison with last year (Oct.22-June.23 vs. Oct.21-June.22) 4% Decrease from the seasonal normal Regional Comparison Oct 22-June 23 Oct 21-June 22 Normal Between October 2022 - June 2023 cumulative rainfall decreased by 2% compared t
Slide 5: Turkish Agriculture Sector
TURKISH AGRICULTURE SECTOR 5
Slide 6: Turkish Agriculture Sector
TURKISH AGRICULTURE SECTOR Turkey’s agricultural10. economy in (2022 numbers) Turkey’s agricultural1. economy in (2022 numbers) Share in GDP 5.4% (2023 1Q numbers) Share in Total Employment 14.9% (1Q 2023 numbers) the World Europe (12-month average) Agricultural Production 2022 – 2023 1.forecast (mi
Slide 7: Agricultural Costs
AGRICULTURAL COSTS According to the Agricultural Input Price Index, in May 2023, costs increased by 33% compared to May 2022. Agricultural PPI increased by 58% in June 2023 compared to the same month of the previous year. PPI and CPI increased by 41% and 38% respectively, compared to the same month
Slide 8: Agricultural Support Program in Turkey
AGRICULTURAL SUPPORT PROGRAM IN TURKEY 8
Slide 9: Agricultural Support Program in Turkey
AGRICULTURAL SUPPORT PROGRAM IN TURKEY Agricultural Support Payments s e crea i n 4 % 12 At the beginning of the year, total budget of 142.9 billion TL was announced, 54 billion TL of this budget was for agricultural support payments and the rest was for agricultural sector investments, agricultural
Slide 10: Consumer Finance
CONSUMER FINANCE TiirkTraktér Golecoge Hazintar. eA Kay TiirkTraktor SNH
Slide 11: Consumer Finance
CONSUMER FINANCE Interest Rates Ziraat Bank is in a competitive position with a post-subsidy interest rate of 10.2%. 20,4% 18% 17,4% 17% 16,2% 18% 15% 14,6% Ziraat Bank loan usage was 74.3% in the first six months. 13,6%12,6% 12% 12% 11,2% 9% 8,7% 9% 8,5% 8,1% 10% 9% 10,2% 6% 6% 4,5% 7,5% 7,3% 6,8%
Slide 12: Local Market Sector Dynamics
LOCAL MARKET SECTOR DYNAMICS Rainfall Input Costs Crop Production Crop Prices 2022 2023 2022 2023 Subsidies Emission Second Hand 12
Slide 13: Turkish Tractor Market & TürkTraktör
TURKISH TRACTOR MARKET & TÜRKTRAKTÖR Turkish Tractor Market (unit) Market Share of TürkTraktör Source: TURKSTAT Source: TURKSTAT Total TürkTraktör 49,4% 51,2% 46,6% 42,1% 42,4% 2020 2021 2022 2022/6 2023/6 Market Market 2022/6M 2023/6M Position Position Turkish tractor market increased by 36% in 202
Slide 14: Global Tractor Market and Export
GLOBAL TRACTOR MARKET AND EXPORT 14
Slide 15: Global Tractor Market
GLOBAL TRACTOR MARKET Total Tractor Market (thousand unit) Our export markets are expected to close 2023 little lower than 2022. 2023 2021 2022 Forecast Turkey is the world’s 4th largest tractor market according to 2022 Important Export total tractor sales. 620 551 522 Markets In 2023, the size of t
Slide 16: Export
EXPORT Tractor Export from Turkey (unit) TürkTraktör’s Export (unit) Source: Tarmakbir Total TürkTraktör 19% increase * Record TürkTraktör is an international player that exports to more than 130 countries. 80% exports are made to North American and European markets. In 2023/6M our export figure rea
Slide 17: Production Status
TiirkTraktor Koc TiirkTraktor 7 Sha
Slide 18: Tractor Production in Turkey & TürkTraktör
TRACTOR PRODUCTION IN TURKEY & TÜRKTRAKTÖR Tractor Production of Turkey (unit) TürkTraktör’s Production (unit) Source: Tarmakbir Total TürkTraktör 18% increase * Record TürkTraktör’s Share in Local Production In 2023/6M, TürkTraktör produced 26,215 tractors representing 68% 55% of the total producti
Slide 19: Agricultural & Construction Equipment
AGRICULTURAL&CONSTRUCTION EQUIPMENT 19
Slide 20: Non-Tractor Revenue
NON-TRACTOR REVENUE Non-Tractor Revenue In 2023/6M, non-tractor revenue(equipment, CE, spare part, driveline) increased Combine by 121% compared to 2022/6M and its share in total revenue realized as 20%. 65% increase Construction Equipment CE 26% increase 359 Construction equipment sales volumes and
Slide 21: 2023 Expectations
2023 EXPECTATIONS* Turkish Tractor Industry Volume: Total Market 72,000 - 80,000 unit Local Tractor Sales**: 33,500 - 36,500 unit Tractor Exports: 15,500 - 16,750 unit CAPEX: 1,000 - 1,300 million TL *Because the market exceeded our expectations, our Turkish tractor market expectations for 2023 incr
Slide 22: Financial Results
\ a FINANCIAL RESULTS Ne SN
Slide 23: 2023/6M Highlights
2023/6M HIGHLIGHTS TL 20.3 B Revenue, TL 5.3 B Gross Profit, 26.2% TL 4.8 B Free Cash Flow, +129% YoY +226% YoY TL 5.0 B YoY increase • Total Tractor Revenue +131% • Positive effect from pricing • Strong profit generation • All-time record tractor sales in the first • Favorable product mix • Negativ
Slide 24: Income Statement
INCOME STATEMENT (Million TL) 2021 2022 2022/6M 2023/6M Change - Domestic Sales 7,929 14,831 5,740 14,769 157% - Export Sales 3,715 7,004 3,141 5,560 77% Total Sales Revenue 11,644 21,835 8,881 20,329 129% Gross Pro t 2,133 4,366 1,634 5,321 226% 18.3% 20.0% 18.4% 26.2% 7.8 pp Net Operating Income 1
Slide 25: Financial Performance (million TL)
FINANCIAL PERFORMANCE (million TL) Gross Pro t EBITDA Gross Profit Gross Profit Margin 28,7% EBITDA EBITDA Margin 24,9% 23,3% 19,1% 22,2% 16% 16,4% 19,6% 18,6% 14,3% 14,9% 18,1% PBT Net Pro t PBT PBT Margin 24,5% Net Pro t Net Pro t Margin 20,2% 18,8% 17,3% 14,7% 15,1% 13,5% 12% 12,4% 11,4% 10,8% 9,
Slide 26: Cash Flow & Debt Maturity Profile
CASH FLOW&DEBT MATURITY PROFILE 2023/6M Cash Flow&Net Cash Change (million TL) 764 423 3 1,123 4,849 4,508 2,100 1,629 Turnover Days&Working Capital (million TL) Liquidity&Debt Maturity Pro le (million TL & €) 2022 4Q 2023 2Q Turnover Days TL Euro 69 67 Debt Maturity 24 18 57 12 45 -3 26 fi
Slide 27: Net Financial Position (million TL)
NET FINANCIAL POSITION (million TL) Net Financial Position NFP / EBITDA 0,47 0,21 0,19 0,25 0,27 0,29 -0,01 -0,20 -0,40 -0,73 27
Slide 28: Dividend (million TL)
DIVIDEND (million TL) Total TL 6.7 billion was distributed as dividend to the shareholders between 2004-2023. 115% 117% 109% 107% 100% 101% 94% 94% 91% 89% 91% 87% 83% 72% 75% 68% 71% 54% 40% 26% 11% 16% 13% 15% 14% 8% 10% 10% 7% 10% 8% 7% 6% 8% 6% 5% 7% 8% 7% 2% Dividend Dividend / Net Pro t Divide
Slide 29: Disclaimer
DISCLAIMER This presentation does contain forward-looking statements that reflect the Company management’s current views with respect to certain future events based on the base-case assumptions. Although it is believed that the expectations reflected in these statements are reasonable, they may be a
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